CalAm's Modified Rate Design Proposals
At the September 1st evidentiary hearing, CalAm introduced for the first time modified rate design proposals represented as being its response to reservations RRB had expressed during rate design settlement negotiations. It included major changes to the current rate design proposal that it had intended to retain until June 30, 2000, and less significant modifications to the July 1, 2000 proposal. CalAm proposed to drop the July 1, 2000 automatic cutover date and move to the stricter, per capita rate design only during periods when high water production placed it in danger of violating SWRCB's Carmel River extraction limit. The triggering requirement was later incorporated into the Settlement, Section 11.02.01:
The Per Capita Design based on an allotment to each customer would be implemented within ten days of notification by CalAm to the Water Division that CalAm has as of any month-end exceeded the production goal for the Carmel River Water Resource System (as defined by the MPWMD) for the water-year to date. Once implemented, the Per Capita Design would remain in place for the remainder of that water-year and then revert to the normal design if production from the Carmel River Water Resource System is below the goal for each of the first two months of the succeeding water-year, in which case return to the normal design would be implemented for each bill issued on or after December 1 of the succeeding water-year.
Besides the per capita triggering provision, the major change CalAm sought was to add additional quantity blocks to its modified current rate design proposal for all customers to discourage excessive consumption. Specifically, residential customers would have a fourth block added that charged all usage over 32 ccf (hundred cubic feet) per month at 400% of the standard rate. Multi-residential customers (i.e., all residential customers who are not individually metered), who currently have a single block set at 75% of the standard quantity rate, would see additional blocks of 100% over 4 ccf, 200% over 8 ccf, and 400% for all usage over 12 ccf, and service charges set at the residential rate. Non-residential customers, who are currently charged 100% of the standard quantity rate for all usage, would receive an allotment as in the per capita rate design, pay 100% of the standard rate for all usage up to their allotment, and 200% of the standard rate for all additional consumption. Low income residential customers would continue to pay no monthly service charge.
CalAm's per-capita rate design proposal introduced in hearings to take effect July 1, 2000 was structurally similar but not identical to the proposed per capita rate design in its application, and very close to the same as that the active parties have agreed to. The agreed-upon per capita rate design is covered at Section 11.02 in the Settlement, and the rate design provisions as we understand them are summarized in somewhat different form in Appendix A-2 to this decision.
